Luke Di Rollo’s Post

NBFIs now manage more assets than banks, but lighter regulation increases systemic risk. Non-banking financial institutions (NBFIs), such as investment funds, pension funds and private equity firms, control a staggering 41% of total EU financial assets. 📉 Why it matters - Recent events have shown how risks in NBFIs spill over and impact everyone: 🏦 The UK pension fund crisis (2022): Rising interest rates triggered a mass sell-off of government bonds (gilts), imposing huge losses on the leveraged pension funds and bringing the gilt market to the brink of collapse. 💸 The “dash for cash” during COVID-19: Investment funds rushed to sell assets, worsening market chaos and liquidity shortages. These incidents highlight how risks in the NBFI sector can create domino effects, impacting everyone, from small businesses to individual savers. ⚠️ The lesson - Differences between bank and non-bank regulation must be levelled up where risks are the same. That’s why Finance Watch recently responded to the European Commission’s consultation on NBFIs, calling for: 🔍 Enhanced transparency on the risks of NBFIs and their interconnectedness with banks. 📑Oversight for unregulated entities like family offices and sovereign wealth funds, where they pose risks to the stability of the financial system. 💪 System-wide stress tests to uncover hidden risks. 🌍 Better climate risk rules to stop vulnerabilities from migrating to unregulated areas. Finance Watch’s recommendations aim to reduce risks and ensure a safer, fairer financial system for all. 📖 Read our full response for more insights: https://lnkd.in/ewZinVKu #NoMoreCrises  #FinanceWatch #FinancialStability #Regulation #SustainableFinance #NBFI

10% of Scotland’s economy is fueled by financial services. In 2022, the sector employed 149,000 people, contributing £14.76bn in value. Major hubs like Glasgow and Edinburgh are at the forefront, while Fife and Aberdeen continue to expand their influence. TheCityUK’s latest report highlights the industry’s dynamic role in Scotland’s economic growth. With key strengths in banking, insurance, and asset management, Scottish financial services are positioned for future growth in green finance, fintech, and AI. This thriving ecosystem has also attracted record inward investment from global financial institutions. The financial services sector is a high-productivity force, delivering well-paid jobs, with Glasgow and Edinburgh leading the way. Beyond Scotland, over 2.4 million people are employed in UK financial services, with two-thirds based outside London. Scotland’s financial services sector is a key player in the UK economy, offering exciting opportunities for growth in the years ahead. How do you see financial services evolving in Scotland? Share your thoughts in the comments below. https://lnkd.in/eP82Chx6

The best BANK to save money with high interest is LAND. Act now!!!! In the vast landscape of financial opportunities, one asset stands out above the rest – land. Imagine a world where your money not only grows but flourishes, where the ground beneath your feet yields prosperity beyond compare. This is the promise of land banking, and it's an opportunity you cannot afford to overlook. While traditional banks offer meager returns and volatile markets leave investors on edge, land remains steadfast, a beacon of stability in an uncertain world. Unlike stocks that rise and fall with the whims of the market or savings accounts that barely keep pace with inflation, land values steadily appreciate over time, providing a reliable hedge against economic downturns. But why wait for tomorrow when you can seize the opportunity today? The best bank to save money with high interest is land, and the time to act is now, leveraging on the naira fall By investing in land banking, you're not just securing your financial future – you're building a legacy for generations to come. Whether you dream of building your dream home, starting a thriving business, or simply preserving wealth for the future, land banking offers endless possibilities limited only by your imagination. But don't just take my word for it – let the numbers speak for themselves. With annual returns far surpassing those of traditional investments, land banking offers an unparalleled opportunity for growth. And with our team of experts guiding you every step of the way, you can rest assured knowing that your investment is in safe hands. So, what are you waiting for? The best bank to save your money with high interest is land. Act now Your future self will thank you for it. #nairadevaluation #NaijaDiasporaInvest #LandBankingNigeria #InvestInNaijaLand #DiasporaLandInvestment #NigeriansAbroadInvest #NaijaPropertyInvest #LandBankingOpportunity #NigeriaLandInvest #DiasporaPropertyInvest #NaijaRealEstateInvest

📊 Commonwealth Bank ($CBA): 2024 Result Analysis In our latest review, we examine CBA's FY24 results and current valuation: 1. Financial Performance - Profits down for FY24 - Final dividend increased slightly to $2.50 - Bad debts fell 2. Valuation Concerns - P/E ratio of 25 - higher than Visa or Alphabet - Price-to-book ratio of 3.3x despite ROE below 14% 3. Our View - Share Price Risk rating increased to High 🤔 Key Consideration: Banks are absorbing money exiting China exposure. When this trend reverses, bank share prices may face significant pressure. Read our full analysis: https://lnkd.in/gNe_wt7R What's your take on CBA's current valuation and future prospects? #IntelligentInvestor #ASX #BankingStocks #Investing #FinancialAnalysis Remember: This report contains general advice only. Consider your personal financial situation and goals before making any investment decisions.

Superannuation funds are on the rise as APRA intensifies regulatory oversight. Chairperson John Lonsdale highlights the sector's rapid growth at a recent banking forum. https://lnkd.in/g_vqRAdM #fsonews #SuperannuationFunds #APRA #InvestmentStrategies

Superannuation funds are on the rise as APRA intensifies regulatory oversight. Chairperson John Lonsdale highlights the sector's rapid growth at a recent banking forum. https://lnkd.in/gQVeRWAi #fsonews #SuperannuationFunds #APRA #InvestmentStrategies

Hello Connections, Lets Discuss About the Financial System *#Financial System Primary goal is to Accelerate the growth of an Economy. The financial system is the backbone of any economy, ensuring that money flows smoothly from savers to borrowers, facilitating growth and stability. Here's a breakdown of its key components: #### The Four Pillars of the Financial System: 1. *#Financial Institution: Think banks, insurance companies, and investment firms. These institutions manage our savings and investments, providing the funds needed for businesses to grow. 2. *#Financial Markets: These are places like stock markets and bond markets where financial products are traded. They provide liquidity and enable investors to buy and sell assets easily. 3. *#Financial Instruments: These are the tools we use to invest and manage risk, like stocks, bonds, mutual funds, and loans. They help us grow our wealth and safeguard against uncertainties. 4. *#Financial Services and Regulations: This includes financial advisory, asset management, and the rules that ensure the system is fair and stable. Regulations protect consumers and maintain the integrity of the financial markets. Key Players in the Financial System: - #Individuals: As savers, investors, and borrowers. - #Corporations: As issuers of stocks and bonds, and as borrowers. - #Governments: As regulators and issuers of debt. - #Financial Institutions: Facilitating transactions and managing assets. - #Intermediaries: Brokers, financial advisors, and asset managers helping us navigate the financial landscape. #Financial Products: - #Equities: Ownership in companies through stocks. - #Bonds: Loans to companies or governments with interest. - #Mutual Funds: Diversified investment pools. - #Derivatives: Contracts based on the value of underlying assets. - #Loans and Mortgages: Borrowing instruments for individuals and businesses. #Financial Services and Regulations: Financial services like banking, investment management, and insurance help us manage our money effectively. Regulations ensure the system is safe and trustworthy, protecting us from fraud and instability. In essence, the financial system is a complex yet vital part of our daily lives, driving economic growth and helping us achieve financial security. Understanding it is key to making informed decisions and navigating the financial landscape confidently. Let’s keep learning and growing together in this dynamic financial world! 🌟 #Finance #FinancialSystem #Investing #Economy #FinancialEducation #LinkedInLearning

✦ The IMPORTANCE of balancing REGULATION and CREDIT FLOW in the financial sector is highlighted to maintain FINANCIAL STABILITY and INCLUSION. ✦ INCREASED PROVISIONING for NBFCs and regulatory constraints on MFIs are affecting financial stability, presenting challenges to the ECONOMIC ECOSYSTEM. ✦ The rise in PERSONAL LOAN SHARE is elevating DEFAULT CONCERNS, prompting REGULATORY MEASURES to ensure stability and risk mitigation. #FinancialStability #Regulation #CreditFlow #NBFCs #PersonalLoans

The Australian private credit market is positioned for continued growth in 2025. So what is driving demand? Tanarra Credit Partners' Peter Szekely explores the drivers that are encouraging investors to allocate to the stable credit sector away from equities in 2025 in his latest article in AdviserVoice Pty Limited #privatecredit #Trump #tariffs #equities #marketoutlook

Our Partner Veena Sivaramakrishnan and Pratik Datta, Associate Director Research, shared their views on the expectations from Budget 2024 for the Banking Sector. In this article published in Business Today, they discuss the need to develop a market for distressed assets, highlighting the limitations faced by foreign players under the current regulatory framework. The article also stresses the need for clearer guidelines from the RBI to support fresh financing for entities emerging from insolvency, aiming to enhance the financial sector's efficiency and investor confidence.   Read More: https://lnkd.in/gADvGhMk